The state-owned China Grain Reserves Corporation had bought 17.2 million tons of grain from Chinese farmers by December 15 last year, an effective way to keep the national grain market stable.

As an executor of China's macro-control policy in the grain sector, the China Grain Reserves Corporation undertakes the most of the task in China's grain purchase, corn exports and imported grain reserves.

Lin Jun, general manager with the corporation, said here Wednesday that as wheat prices in China kept dropping and most farmers found it difficult to sell their grain in 2005, the corporation required all of its branches across the country to buy grain from the farmers at prices higher than the State-label.

The corporation will exert itself to go on paying higher prices for grain in 2006, in a hope of keeping the grain market steady, Lin said.

Source: Xinhua